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The time has come when Canada must diversify beyond its traditional U.S. energy export markets and seek new ones, specifically those in the Asia Pacific. British Columbia is the gateway to those new and expanding markets and the alignment between Asian demand and Canadian supply makes 2012 B.C.’s moment.

The development of Canada’s hydrocarbon deposits — and the construction of the infrastructure required to bring them to new markets — is fundamental to our national interest. Access to Canada’s west coast is critical to this objective. These projects are an important engine of economic renewal and national prosperity in a period of profound uncertainty.

There are three practical considerations that underpin this investment and shift of export focus. First, capital is fungible. Second, the opportunities and competition for that capital are truly global. Third, capital will always find and settle in the most favourable circumstances.

That means we can never take for granted that investment will just flow to our country and our infrastructure projects. It’s up to us to compete by creating an investment climate that attracts international capital.

A key element to achieve that end is a clear public policy framework that provides consistency and transparency. The absence of private and public sector leadership, however, is a serious impediment.

This is a defining moment, for Canada and the federal government has an important role to play in resolving a host of tough issues. As does the British Columbia government, B.C.’s first nations and, of course, the many private sector companies involved.

Admittedly, the constitutional and legal issues surrounding west coast energy corridors, terminals and shipping are extraordinarily complex. The way forward hinges upon negotiating through the overlay of unresolved first nation land claims and unresolved environmental and infrastructure questions.

These may well be the most difficult public policy questions in Canada today and it will take the combined efforts of governments and the private sector to deliver.

To begin, however, the constitutional obligation to consult with first nations is not a corporate obligation. It is the federal government’s responsibility.

Second, the obligation to define an ocean management regime for terminals and shipping on the west coast is not a corporate responsibility. It is the federal government’s responsibility.

Finally, these issues cannot be resolved by regulatory fiat — they require negotiation. The real risk is not regulatory rejection but regulatory approval, undermined by subsequent legal challenges and the absence of “social license” to operate.

To advance our national interest, the federal government must begin consulting with first nations on the unresolved land claims that blanket B.C. Energy corridors will need to be secured on a non-derogation basis, allowing for development without forcing first nations to relinquish unresolved issues.

Ottawa also has sole jurisdiction over territorial waters. It must take the lead in developing a management regime that will take into account the rewards as well as the environmental risks of increased west coast tanker traffic. Legislation will be required, as well as contingency plans for unforeseen eventualities.

It will be essential — given the importance of these waters to coastal first nations — for the government to pursue a co-management regime for these waters, together with the province of British Columbia and the coastal first nations.

For the private sector, progress means finding and deploying new ways to be proactively inclusive. It means listening. It also means finding common ground, delineating mutual benefits, and articulating principles and values and sticking to them.

Ensuring considerations of traditional knowledge, community consultation, disaster management framework and remediation strategy — as well as funding — are integrated willingly into initial plans will make it a lot easier than trying to bolt them on later.

That’s the only way to secure social license to operate. And that licence is what will make or break the multi-billion-dollar developments required for Canada to pursue west coast access and the consequent economic prosperity.

It just makes common sense and good business sense to get out in front of these issues.

Based on history, it is reasonable to conclude that any regulatory approval will come with extensive environmental considerations and conditions.

Projects on the scale we’re talking about here have faced, and always will face, headwinds — often from several directions at the same time.

One way to help contain uncertainty and attract capital is to carefully frame these infrastructure projects at the outset, to control what can be controlled by proactively adopting innovative approaches that go beyond the minimum requirement.

If we get these foundational elements correct, then Canada’s ability to attract the capital necessary for infrastructure development will ensure returns that benefit individuals, communities and, ultimately, Canada’s economic future.

Jim Prentice is senior executive vice-president and vice-chairman of the Canadian Imperial Bank of Commerce.

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